Treasury Yields Drop as Inflation Data Bolsters Rate Cut Hopes

U.S. Treasury yields fell on Friday, reflecting easing inflation indicated by recent data. The 10-year Treasury yield dropped to around 4.225%, while the 2-year yield was slightly higher at 4.694%. This decline follows lower-than-expected producer price index (PPI) data, which showed a 0.2% decrease in May, and other indicators like high jobless claims and flat consumer prices. Investors are increasingly confident about potential interest rate cuts by the Federal Reserve, further boosting Treasury prices.